Alberta Communities Get a Boost in Housing Supply

Dozens of small Alberta communities have received millions in housing funding from the federal government. Is it enough to bring people to the province’s rural areas?

By Brett Surbey | 4 minute read

The federal government has announced funding of over $200 million to select Alberta municipalities and cities, including Banff, Edmonton and Airdre.

Canada is facing a persistent housing crisis as our country grapples with skyrocketing home prices and major population surges. Alberta is facing the same challenges as well — from low supply levels to record-breaking wildfires within the last year. To help combat housing affordability issues through the building of new homes, the federal government announced a number of funding plans for local Albertan communities. 

In February, the Feds established agreements with Banff, Sylvan Lake, Bow Island, Westlock, Smoky Lake and the Village of Duchess to provide a combined $13.8 million through its Housing Accelerator Fund (HAF). According to Canada Mortgage and Housing Corporation (CMHC), this funding will, “help spur the construction of more than 3,100 homes over the next decade.” 

Larger municipalities also received funding earlier this year. Airdrie received just south of $24.8 million to increase its housing supply, and Edmonton received approximately $175 million. Both of these projects are expected to build over 900 and 5,100 homes, respectively. 

With that much money going to communities located just outside of a major city center like Calgary, could homebuyers be more motivated to buy more affordable homes in smaller communities with more supply? 

“It really depends on the location,” says Steven Lubiarz, a REALTORⓇ with Greater Calgary Real Estate. “And it’s also going to depend on what cities and towns, and their councils, will do to entice builders and people to come to these communities.”  

The federal government has set out requirements for municipalities that have received funding, which means these communities will need to vote and adjust their bylaws to come up with a new housing development framework. As for funding requirements, CMHC said in its news release that the federal government asks for  innovative action plans from local governments. “Local governments are encouraged to think big and be bold in their approaches, which could include accelerating project timelines, allowing increased housing density, and encouraging affordable housing units,” the release states.

Lubiarz believes that fulfilling the funding requirements is all about timing. “[It depends on] how quickly some municipalities can decide on what the rules will be in allowing production and people to obtain these rentals and purchase properties,” Lubiarz says. 

Whether or not these communities can execute on new housing strategies, such as adding more secondary suites and multi-unit homes, is a key component, he adds.

Kelly Jacobson, also a Realtor with Greater Calgary Real Estate who lives in Airdrie, notes that Airdre’s rental landscape is at maximum capacity, and that the funding could increase the community’s population. “There’s a lot of young families here. And whenever something comes up for rent, [the rental costs are more expensive] than in Calgary [because of the lack of supply],” he says.

Jacobson has been a resident of Airdrie since 2005, and has seen the city’s population grow from 25,000 to 86,000 in under 20 years. Between 2016 to 2019, the city increased its population by 3,000 a year.

“So with 900 homes being built, I think that’s going to give us another surge [in population],” he says. Assuming the average family coming to Airdrie is a family of four, another 900 homes could, in Jacobson’s view, increase the population by an additional 3,600 on top of the annual 3,000 increase.

Ultimately, whether the federal government’s funding to smaller communities brings more people to rural locations will depend on the demographic of the people moving to the province, their lifestyle, and the appetite to live outside a city centre. 

“I think it depends on whether people are going to [consider moving] to a rural community, as opposed to Calgary, because it might be more affordable,” says Jacobson.